- Escorts Q2 profit up 219% at Rs 31.3 crore
- Quarter turnover up by 21.7% at Rs 995.3 crore
- Second Quarter Tractor volumes up 35.4% at 15,482 units
- Construction Equipment volumes in Q2 up 18.3%
Escorts Limited today reported a profit of Rs 31.3 crore in the quarter ending September 30, 2016 as against a profit of Rs 9.8 crore in the corresponding quarter in the previous fiscal. The net profit for the half year ending September 2016 was up by 74 percent at Rs 78.2 crore as against Rs 45 crore in the corresponding period last year.
Tractor sales were up by 35.4% at 15,482 units during the second quarter of the current fiscal. Sales of construction equipment went up by 18.3% at 724 units as against 612 units in the corresponding quarter.
HIGHLIGHTS
- H1 Turnover up 14.8% at ` 2,065 crore.
- EBIDTA for quarter up by 139.9% at Rs 62.5 crore.
- EBIDTA for the first half up by 79.7% at Rs 150.2 crore
- Domestic tractor market share up at 11.3%; EBIT margins up 238 bps
- Material cost in Q2 down by 105 bps; H1 by 183 bps
Turnover for the quarter was up by 21.7% to Rs 995.3 crore as against the quarter ended September 2015. Turnover for the First half of fiscal 2017 stood at Rs 2,065 crore, up by 14.8% as against Rs 1,798 crore in the half year ended September 2015. Material cost was down by 105 bps at 68.06% as against 69.1% in the corresponding period. In the First half, material costs were down by 183 bps at 68.3% as against 70.1% in last year April-September 2015.
EBIDTA for the quarter was up by 139.9% at Rs 62.5 crore as against Rs 26 crore in the corresponding quarter. EBIDTA for the First half was up by 79.7% at Rs 150.2 crore as against Rs 83.6 crore in the corresponding period last fiscal.
Speaking on the results, Chairman Mr. Rajan Nanda said, “We were able to capitalize on good monsoons and return of market demand both through increased sales and continuing returns from cost compression. Favourable monsoons have to be followed by concerted policy action to further give agriculture sector a huge push. This is the time for a big impetus to farm mechanization, crop insurance and agriculture infrastructure. The construction industry too is showing signs of improvement and railways are on a healthy track. ”
According to Mr. Nikhil Nanda, Managing Director, Escorts Ltd, “Our investments in better product mix, increased coverage, enhanced efficiencies and product innovation will continue to deliver results and higher profitability when the demand scenario improves. We have made strategic investments in the recent quarters on building human capital, strong brand and sharp market focus. The new products that we have introduced have been well received by our customers. Our focus on quality, engagement with the customer and cost efficiencies will be a continuous process. Our efforts in strengthening our dealer network and focus on specific markets has helped us gain mindshare and market share in key agricultural zones.”
SEGMENT WISE PERFORMANCE
Escorts Agri Machinery
Tractor sales were up by 35.4% at 15,482 units during the second quarter of the current fiscal. This was accompanied by significant improvement in EBIT margins which was up 247 bps at 9.4% as compared to 6.9% in the corresponding period. For the First half of the year, tractor sales was up by 21% at 31,845 units with margins up at 10.3% as against 8.2% in the corresponding period. Market share grew to 11.3% as against 10.6% in the corresponding quarter and 9.9% in the preceding quarter.
Escorts Construction Equipment
Sales of construction equipment went up by 18.3% at 724 units as against 612 units in the corresponding quarter. Construction equipment sales were up by 30.6% at 1,463 units in the First half of the fiscal as against 1,120 units in the corresponding period.
Escorts Railway Products
The division recorded a marginal increase in revenue for the second quarter at Rs 60.1 crore as against Rs 59.9 crore in the corresponding quarter. For the half year, ERP revenue stood at Rs 117.9 crore, an increase of 3.06% against Rs 114.4 crore in the corresponding period of the last fiscal. The current order book is around Rs 110 crore and will be executed in the next 6-7 months.
Escorts Auto Products
Revenues from the Auto division was Rs 12.6 crore in the quarter ending September 2016 as against Rs 21.6 crore in September 2015.
The reviewed accounts of the second quarter and First six months ended 30th September 2016 has been approved by the Board of Directors of Escorts Limited.
